WTI surrenders gains, testing $49.00
The barrel of West Texas Intermediate has given away its initial gains and has now retreated towards the $49.00 mark, down nearly 1% for the day so far.
WTI upside capped around $50.00
Prices for the barrel of the American benchmark for the sweet light crude oil are now extending the recent bearishness, putting the key 200-day sma to the test in the $49.00 neighbourhood, or 4-week lows.
Prices for the WTI regained selling pressure as market participants continue to digest another increase in US oil rig count, as per the latest report by driller Baker Hughes (Friday). This time, US active oil rigs increased by 5 to 688 during the week ended on April 14, signalling at the same time the 14th consecutive week with gains.
Crude oil prices thus stay under pressure as market participants continue to weigh the probability of an extension of the OPEC/non-OPEC output cut deal beyond June vs. prospects of rising US oil production.
WTI levels to consider
At the moment the barrel of WTI is losing 0.67% at $49.29 facing the next support at $49.20 (low Apr.21) and then $49.06 (200-day sma). On the upside, a break above $51.06 (20-day sma) would aim for $51.38 (55-day sma) and finally $52.65 (high Apr.19).
